<THE RULE BREAKER PORTFOLIO>
Rule Breaker Buy Announced
...with warnings and all
by Jeff Fischer ([email protected])
ALEXANDRIA, VA (Feb. 25, 1999) -- The Rule Breaker was able to crush the stock market as Amazon.com (Nasdaq: AMZN) flowed $14 higher following an upgrade to "strong buy" from an analyst and the news of its investment in drugstore.com. Every other stock that we own, except for Chevron, declined, as the S&P 500 lost 0.67%.
Hot off the press, today we announce a new buy.
Sometime in the next five market days we'll be buying approximately $30,000 worth of eBay Inc. (Nasdaq: EBAY). Note that $30,000 represents 5.3% of this portfolio, that eBay is being bought with cash (no margin of any kind), and that it is being bought for the long term. We believe that this is our riskiest investment to date. I state this because, despite our intentions, some people do mimic our trades. Please know, as always, that you do so at your own risk. And know that simply copying our moves isn't what Foolishness is about.
As Fools know, Foolishness is about making your own decisions for your own reasons, learning from others, being optimistic, being responsible for your own choices, and being accountable, too. When all those pieces are in place, you'll enjoy yourself, too. Enjoying yourself is the final component of Foolishness.
In relation to the above warning, it also serves to note that eBay has a thin float -- meaning very few shares are on the market for sale. This means that several market orders for the stock at the open or anytime during the day can cause the shares to gap up or down considerably. Be forewarned (I dislike to presume this, and I hope it doesn't happen) that if several market orders are placed for this stock it will probably gap up higher than you'd expect before any shares are bought.
As always, don't mimic us for the sake of copying us. Remember ATC Communications, on which we lost 90%. We make mistakes. We always will. We're buying eBay for our own reasons, which are explained in the buy report (linked below). You should invest according to your needs and for your own reasons -- of course.
Okay. We all know what Foolishness is about.
Two-fifths of the new buy report is from Tuesday's column, so you might recognize it. The rest was written to complete the buy report. Thus, here is the complete new buy report.
See you on the Rule Breaker message board.
Fool on!
Will Harry Jones surprise us with a buy report today? Doubtful.
02/25/99
Close
Stock Change Bid ---------------- AMZN +14 1/16 125.00 AMGN - 1/4 126.75 AOL - 1/2 87.00 ATHM -2 5/16 103.69 DJT - 1/8 4.19 CHV + 3/16 78.50 CAT - 5/16 45.69 DD - 1/16 53.19 GT - 13/16 46.38 IOM - 3/16 6.13 SBUX - 11/16 51.31 TDFX - 3/16 11.50 |
Day Month Year History Annualized
R-BREAKER +2.93% -0.69% 11.40% 1018.13% 69.83%
S&P: -0.67% -2.71% 1.60% 185.16% 25.84%
NASDAQ: -0.54% -7.15% 6.12% 223.09% 29.34%
Rec'd # Security In At Now Change
8/5/94 2200 AmOnline 0.91 87.00 9472.54%
9/9/97 1320 Amazon.com 6.58 125.00 1799.91%
5/17/95 1960 Iomega Cor 1.28 6.13 378.36%
12/4/98 450 @Home Corp 56.08 103.69 84.89%
4/30/97 -1170*Trump* 8.47 4.19 50.55%
12/16/98 290 Amgen 85.75 126.75 47.81%
2/23/99 180 Chevron 79.17 78.50 -0.85%
2/23/99 300 Caterpilla 46.96 45.69 -2.72%
2/23/99 290 Goodyear T 48.71 46.38 -4.80%
7/2/98 235 Starbucks 55.91 51.31 -8.22%
2/20/98 260 DuPont 58.67 53.19 -9.34%
1/8/98 425 3Dfx 25.67 11.50 -55.20%
Rec'd # Security In At Value Change
8/5/94 2200 AmOnline 1999.47 191400.00 $189400.53
9/9/97 1320 Amazon.com 8684.60 165000.00 $156315.40
12/4/98 450 @Home Corp 25236.13 46659.38 $21423.25
12/16/98 290 Amgen 24867.50 36757.50 $11890.00
5/17/95 1960 Iomega Cor 2509.60 12005.00 $9495.40
4/30/97 -1170*Trump* -9908.50 -4899.38 $5009.13
2/23/99 180 Chevron 14250.45 14130.00 -$120.45
2/23/99 300 Caterpilla 14089.20 13706.25 -$382.95
2/23/99 290 Goodyear T 14127.33 13448.75 -$678.58
7/2/98 235 Starbucks 13138.63 12058.44 -$1080.19
2/20/98 260 DuPont 15253.14 13828.75 -$1424.39
1/8/98 425 3Dfx 10908.63 4887.50 -$6021.13
CASH $40083.27
TOTAL $559065.45
Note: The Rule Breaker Portfolio was launched on August 5, 1994, with $50,000. Additional cash is never added, all transactions are shared and explained publicly before being made, and returns are compared daily to the S&P 500 (including dividends in the yearly, historic and annualized returns). For a history of all transactions, please click here.
</THE RULE BREAKER PORTFOLIO>
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